Gold prices remain steady

28 May 2024 , 09:07 AM

Tuesday’s gold prices remained steadt as investors remained cautious ahead of significant U.S. inflation data that may shed more light on the Federal Reserve’s future course of policy.

Spot gold continued to hold steady at $2,351.39 an ounce, following a 1% increase the prior session. At $2,352.30, gold futures were up 0.8%.

Investors are currently awaiting the Friday April reading of the personal consumption expenditures price index (PCEPI), which is the preferred inflation indicator used by the US central bank.

The CME FedWatch Tool indicates that traders’ bets indicated rising scepticism about the likelihood of several rate cuts by the Fed in 2024, with a current pricing in of roughly a 63% chance of a rate decrease by November.

Although gold is seen as an inflation hedge, owning non-yielding gold has a greater opportunity cost as interest rates rise.

According to figures from the Hong Kong Census and Statistics Department, China’s net imports of gold through Hong Kong fell by 38% in April compared to the same month last year.

According to the statement, Vietnam’s central bank would cease holding domestic gold auctions and take action to stabilise the price of the precious metal.

Operator Barrick Gold Corp stated that the Porgera Mine in Papua New Guinea is running unhindered and that there is enough fuel on site for the mine to run normally for 40 days.

In another incident, 45 people were murdered in a fire started by an Israeli airstrike in a tent camp in the Gazan city of Rafah. This led to a global outcry from leaders around the world, who called for the enforcement of a World Court ruling to stop Israel’s attack.

In times of economic uncertainty, gold typically performs well due to its dependability, which can help reduce the risk associated with more volatile investments.

Spot silver increased by 0.4% to $31.81 an ounce, palladium gained by 0.4% to $992.50, while platinum increased by 0.2% to $1,056.15.

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